The automaker is investing $2.7 billion in German finance company AGCO, the company that oversees Toyota’s business.
AGCO is part of a German government program that supports the automotive industry.
The government’s goal is to create jobs in the country.
Toyota will invest $1.3 billion in Germany.
The automakers plans to invest about $600 million in the auto industry by 2020, and will invest another $400 million in Germany by 2020.
The investment is expected to create up to 1,000 jobs.
Toyota said that it will invest about 6.3 million euros ($7 million) in its Japanese and Chinese plants, while it will continue to invest more in Japan.
Toyota is investing in its factories in Mexico and China to increase production capacity, said Toyota Japan president Hiroshi Kobayashi.
He added that Toyota’s investments in Mexico will be for the long-term, and that its investments in China will be to produce the latest vehicles.
Toyota plans to expand the Japanese factory in Tijuana, Mexico, to double its capacity to 300,000 vehicles by 2020 and to increase the capacity to 800,000 cars, Kobayashis.
He said that Toyota will also expand production of the new XC and XF compact SUV models.